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Old 11-12-2016, 04:04 AM   #1
gb103
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Angry VAT demand letter from builder

I own a flat which is got registered as well as hand over to me in 2015, August Month after clearing all balances. Flat is situated in Delhi NCR.
Now I received a VAT demand from the builder, asking that it is for Haryana VAT tax which is levied on Sale of constructed property as per Notification No.19/ST1/H.A.6/2003/S59A/2016 dated September 12, 2016) ("VAT Amnesty Scheme"
But as per my understanding this should only be levied from the property owner which are not handed over yet to their owners. When I ask the same to my builder then it shows the reference of Conveyance Deed Clause as stated below:

"In the event, any fresh, additional or enhanced charges or tax is levied or leviable, after execution of this Conveyance Deed, whether with immediate or retrospective effect, the Vendee agrees to pay in full (if in respect of the said Unit), or pro-rata share (if in respect to the entire Colony), as the case may be, of such additional taxes, levies or charges imposed, without any demur or protest."

Although this clause is present in the conveyance deed but as we do not understand such purpose of these clause, so we did not resist then.

So what options I have right now, is there any legal case possible against this demand or do I have to pay this amount to them.
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Old 11-12-2016, 11:02 AM   #2
AFFA
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Default Re: VAT demand letter from builder

I wish to inform you that VAT may not be demanded from you. In this regard you may object to its payment on the ground that it was not levied on constructed flat and further it has been started after flat was provided to you. Hence you may object to any such demand from you. Lastly liability may be upon developer and not upon you personally.

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Old 11-13-2016, 01:23 AM   #3
gb103
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Default Re: VAT demand letter from builder

Quote:
Originally Posted by AFFA View Post
I wish to inform you that VAT may not be demanded from you. In this regard you may object to its payment on the ground that it was not levied on constructed flat and further it has been started after flat was provided to you. Hence you may object to any such demand from you. Lastly liability may be upon developer and not upon you personally.

AFF
Thank you so much for replying ˜˜
I will be thankful more if you clarify following thing further:
a) As the VAT demand is sent to me with below subject Line :
Billing of value added tax ("VAT") under Haryana Value Added Tax Act, 2003 ("Act") on sale of constructed property be it a residential or commercial constructed property in pursuance of Amnesty scheme recently introduced by Haryana Government
Is it still come into same category as you stated, "it was not levied on constructed flat and further it has been started after flat was provided to you"

b) The Full clause in which they mention that I have to pay the taxes even after conveyance Deed is as below :
"In the event, any fresh, additional or enhanced charges or tax is levied or leviable, after execution of this Conveyance Deed, whether with immediate or retrospective effect, the Vendee agrees to pay in full (if in respect of the said Unit), or pro-rata share (if in respect to the entire Colony), as the case may be, of such additional taxes, levies or charges imposed, without any demur or protest. The determination of the pro-rata share of the Vendee shall be done by the Vendor, whose decision in this regards shall be final and binding on the Vendee. All such amount shall be payable on demand either to the Vendor or its designated / nominated Maintenance Agency, as the case may be. In case the Vendee seeks to challenge the same, the Vendee agrees and undertakes to make the payment of such amount as may be demanded by Vendor and only after making such payment to the Vendor, the Vendee or its nominee or assignee shall be entitled to challenge the demand so raised by the Vendor. The Vendee understands and agrees that any fresh incidence of tax whatsoever including VAT, GST, Service Tax or statutory demands such as external development charge by HUDA or any increase on such account or demand of money or bank guarantee in place of it by HVPN/DHBVN, even if it is with retrospective effect, shall be borne and paid by the Vendee"
Please suggest me that how to challenge the same (will need a lawyer or simple mail would work) as they have given me 25th November deadline to pay and after that my builder will impose a 18% interest on the same.
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